Information technologies, differentiation strategies and financial performances of Indonesian banking industry

Information technologies are external factors that can affect differentiation strategies and financial performance of the banking industry. It may be leveraged to increase the productivity and profitability of a company for improving it’s financial performance. This study analyses the influence of information technological factors on differentiation strategies and financial performance of Indonesia’s banking industry. Data were gathered using a questionnaire survey of directors, executive directors and managers of 39 banking headquarters. Using descriptive analysis and correlation matrix, two hypotheses were tested. The results showed that technological factors positively and significantly influenced the banks’ differentiation strategies; and that differentiation strategies positively and significantly influenced banks’ financial performance in the country. These findings suggest that decision makers in the Indonesian banking industry would do well to make full use of various information technologies to improve their financial performances.